Cheap wind power distorting power market pricing, leads to legislative interest in study

[Elderberry]

Houston Chronicle by  L.M. Sixel April 23, 2019

Renewable energy developers receive federal subsidies to build solar farms and wind farms, incentives that have helped spur so much wind development over the past few years that abundant wind energy from West Texas has made Texas among the cheapest states for power.

Texans paid 8.4 cents per kilowatt hour last year for electricity, according to the Energy Department. Only six states paid less for power.

More: https://www.houstonchronicle.com/business/energy/article/Cheap-wind-power-distorting-power-market-pricing-13786460.php

[thackney]

...The Texas Legislature recently took a step to eliminate the cost advantage in renewable energy by passing similar bills out of the Senate Committee on Business & Commerce and the House Committee on State Affairs that would require state regulators to determine how to either eliminate federal tax credits for developers in Texas or compensate fossil fuel competitors for market distortions caused by incentives....

That make me a little bit nervous....

[kidd]

Wind power accounts for about 12% of the electricity generated in Texas. That's not enough to account for the cheap electricity in Texas.

A bigger reason is competition.

Texas is the leader in energy deregulation. There are only 14 states with some form of deregulated electricity, most of them are in the Northeast, where NIMBY attitudes have severely limited producers. OTOH, Texas has lots of oil, coal, nuclear and wind power.

I know for a fact that the Texas nuke plants are just barely profitable. It would make sense to eliminate the unfair advantages given to wind power.

[IsailedawayfromFR]

Wind power accounts for about 12% of the electricity generated in Texas. That's not enough to account for the cheap electricity in Texas.

A bigger reason is competition.

Texas is the leader in energy deregulation. There are only 14 states with some form of deregulated electricity, most of them are in the Northeast, where NIMBY attitudes have severely limited producers. OTOH, Texas has lots of oil, coal, nuclear and wind power.

I know for a fact that the Texas nuke plants are just barely profitable. It would make sense to eliminate the unfair advantages given to wind power.

I agree, wind power makes electricity more expensive, not less so.

Only federal subsidies can make things cheaper.

It is a market distortion for the time being, but the at some point in time, the piper will have to be paid.